CY Dividend

CYPRESS SEMICONDUCTOR dividend

Although CY has a dividend of 0.11 with an ex-dividend date of Sep 26, you can sell covered calls on CYPRESS SEMICONDUCTOR to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Wed 2:40 PM ET):

CYPRESS SEMICONDUCTOR (CY)
Bid Ask Last Change Volume P/E Market Cap
15.95 15.96 15.95 -0.41 4.5M 409 5.9B

CY Dividend-Like Income Using Covered Calls

With CY at 15.95, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 0.48 0.1
5% 0.80 0.2
10% 1.60 0.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On CY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 16.00 0.15 3 5.0 0.04 (0.3%)
Sep 21 19.00 0.05 38 0.1 3.04 (19.1%)
5% Yield On CY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 16.00 0.15 3 5.0 0.04 (0.3%)
Sep 21 18.00 0.10 38 0.3 2.04 (12.8%)
10% Yield On CY Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Aug 17 16.00 0.15 3 5.0 0.04 (0.3%)
Sep 21 17.00 0.25 38 0.7 1.04 (6.5%)

Want to increase dividends with covered calls?  Sign Up For A Free Trial

 
Top 10 Open Interest For Aug 17 Expiration     Top 5 High Yield
1.SPY dividend 6.XLF dividend   1.UVXY dividend
2.EEM dividend 7.FB dividend   2.JWN dividend
3.QQQ dividend 8.FXI dividend   3.NVDA dividend
4.SPX dividend 9.GLD dividend   4.AMAT dividend
5.BAC dividend 10.AABA dividend   5.GDS dividend

Want more examples? CXW Dividend | CYB Dividend